​The Benefits of Private Financing

The Benefits of Private Financing

by Fred Myer

We don't hear much about seller financing today as we have in the past, rates are low and buyers and even sellers forget about the benefits they can provide. Some deals won't get done without it.

First with a private or seller finance deal you as the finance provider get to decide how you are going to qualify. The borrower, you can control the terms, in as much as the deal will allow. Deals can close much faster without much of the new lender rules, regulations and guide lines. You can often get a premium with regards to price as the financing provided has a value of it;s own to the buyer. Sellers that finance don't have to adhere to down payment guide lines, they can take as little down as they want to. Oh and I almost forgot or much the most important part and that is getting an agent that understands first how to put a seller finance deal to seller and I cant stress how important that is because a knowledgeable craftsman of this part of our trade can turn a not so good deal into a great deal with they stroke of his pen. Also for sellers a benefit that needs to be pointed our is when financing your own sale there can be a tax savings with an installment sale you only pay gains to the extent you receive payments each year. This can be particularly advantageous if you have owned the property for several years and don't wish to exchange out. And lastly all private financing has the ability to be convertible into other pieces of real estate with the right terms ad conditio written into your note. So if you would like to learn more please give us a call!